Threshold Program Agreements
A Threshold Program Agreement is a contract between the United States and a country that provides financial assistance to help improve a low score on one of MCC's 17 policy indicators.
By improving a low indicator score, a country may then become eligible for a Millennium Challenge Compact to help reduce poverty and stimulate economic growth.
Countries are not required to participate in the Threshold Program to improve their indicator scores and to qualify for Compact funding. Countries can track their policy scores with MCC and work independently to make improvements.
Selection Methodology
The MCC Board of Directors selects countries for the Threshold Program based on:
- The country's overall performance on all 16 policy indicators.
- The country's demonstrated commitment to improving their scores on indicators they fail.
- The country's ability to undertake reform.
Once selected, to received assistance, countries must:
- Create a plan that identifies measurable way to improve a specific indicator score.
- Submit the plan to MCC for review and approval
Threshold Program Agreements are awarded to countries whose plans demonstrate a meaningful commitment to reform and a high likelihood of successful implementation.
Examples
- On July 22, 2005, Burkina Faso became the first Threshold Country to be approved for MCA Compact funding. Burkina Faso was awarded $12.9 million for its Threshold Country Plan, which is designed to improve girls' primary education completion rates.
- Malawi has also presented a successful Threshold Country Plan and on September 23, 2005, was awarded $20.9 million to fund its anti-corruption efforts.
Program Implementation
The U.S. Agency for International Development (USAID), working with MCC, is currently the primary agency overseeing the implementation of the Threshold Program. Other U.S. agencies may also be involved in providing assistance for the Threshold Program.